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Full-Text Articles in Bankruptcy Law
Postpetition Lending Under Section 364: Current Issues - Incentives To Lenders To Provide Financing To Borrowers Who Are The Subject Of Bankruptcy Cases, David G. Epstein
Postpetition Lending Under Section 364: Current Issues - Incentives To Lenders To Provide Financing To Borrowers Who Are The Subject Of Bankruptcy Cases, David G. Epstein
Law Faculty Publications
A bankruptcy debtor is not viewed by most lenders as a desirable customer. Most lenders arc understandably reluctant to extend credit to such a borrower. This reluctance compounds the difficulties of a bankruptcy debtor. Without new financing, the cash needs of a debtor often will cause the debtor's assets to be liquidated, thereby foreclosing any hope of reorganization and defeating the rehabilitative purposes of the Bankruptcy Code. To counter the understandable reluctance of financial institutions to lend to bankruptcy debtors, section 364 of the Bankruptcy Code provides incentives to lenders to provide financing to borrowers who are the subject of …
The Rehnquist Court, Strict Statutory Construction And The Bankruptcy Code, Carlos J. Cuevas
The Rehnquist Court, Strict Statutory Construction And The Bankruptcy Code, Carlos J. Cuevas
Cleveland State Law Review
This article analyzes the Rehnquist Court's use of strict statutory construction. It will argue that strict statutory construction can be justified under public choice and agency theories of statutory interpretation, and that strict construction promotes the implementation of bankruptcy policy. Strict statutory construction, moreover, is beneficial because it produces reliability and predictability, which is essential to our dynamic economy. The use of strict statutory construction precludes a court from relying on legislative history to manufacture the result that the court thinks is the best solution to the problem. Another justification for strict statutory construction is that it prevents bankruptcy judges …